
The latest economic sentiment data from Germany significantly influenced the EURUSD movement during trading on Tuesday (March 18, 2025).
According to ZEW, the economic sentiment for Germany this month is reported at 51.6, which exceeds the forecast provided by Trading Central of 45, and is a great improvement from last month’s figure of 26. Moreover, the economic sentiment for the Eurozone was reported at 39.8, also surpassing the forecast from Trading Central of 38.
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Following this release, EURUSD experienced an increase, nearing the day’s peak of 1.09547.
Currently, EURUSD is at its highest level in over four months, bolstered by positive sentiment after the German parliamentary party reached an agreement on fiscal reforms set by Friedrich Merz, who is about to take office as Chancellor. These fiscal reforms are expected to stimulate Germany’s economic growth and, in turn, benefit the European economy.
On the other hand, the U.S. economy is anticipated to face a slowdown. This presents a substantial opportunity for further increases in the EURUSD rate.